Adani Enterprises to Build ₹84,000 Crore Coal-to-Chemicals Plant on Former UMPP Land in Odisha

Adani Enterprises Ltd (AEL) has announced plans to establish a massive coal-to-chemicals complex in Odisha’s Sundargarh district, repurposing land originally acquired for the now-abandoned Bhedabahal Ultra Mega Power Project (UMPP), reported The New Indian Express, which published details early on March 15, 2026. Business Standard reported the same later the same day with its own coverage.

The ₹84,000 crore project will be developed through OD Syn-Gas & Chemicals Limited (OSGCL), a step-down subsidiary of AEL.

Project Overview

The upcoming facility will be spread across 3,047 acres in Bhedabahal, Sadar block, Sundargarh. The land was initially earmarked for a 4,000 MW UMPP, which was later scrapped. With approval from Odisha’s High Level Clearance Authority (HLCA), Adani is set to transform the site into one of India’s largest coal-to-chemicals hubs.

• The plant will convert coal into high-value chemicals such as methanol, syngas, and downstream derivatives.
• It aims to reduce India’s reliance on crude oil imports.
• Supports industrial diversification in Odisha.

Economic and Strategic Significance

• Investment: ₹84,000 crore (approx. $10 billion)
• Employment: Thousands of direct and indirect jobs expected
• Industrial Impact: Strengthening Odisha’s position as a hub for energy-intensive industries
• National Strategy: Aligns with India’s push to explore coal-to-chemicals as an alternative energy pathway

Balancing Benefits and Challenges

• Economic Growth: Significant boost to regional development
• Environmental Concerns: Coal-based chemical production is carbon-intensive
• Technology Needs: Carbon capture solutions will be critical
• Community Impact: Land repurposing may raise local concerns

Broader Context

India has been actively exploring coal-to-chemicals projects to diversify its energy mix. Odisha, with its abundant coal reserves and industrial infrastructure, is emerging as a key destination for such ventures. Adani’s pivot from traditional coal power generation to chemical production reflects a strategic shift toward value-added resource utilization, in line with global trends.